Introduction to Global Markets

Introduction to Global Markets

4 asset classes covered

1. Stocks 2. Forex3. Futures4. Options

s

Then

Now

Forex

Forex

Foreign exchange market1. Measures the value of one

currency in another currency. E.g. USD/CAD, EUR/USD

2. Trades 24 hours a day except weekends

3. Biggest trading volume (daily turnover of 3.98 trillion) of all markets.

Fluctuations

Similar to stocks, forex is affected by many events.

Technicals: chart patterns, volume, RSI.

Fundamentals: countries ‘ economic indicators, political events.

USD/JPY

Famous people

1. George Soros, economist, chairman of Soros Fund Management

2. “The Man who broke the Bank of England”

Most famous for his $1Billion in profits during the “Black Wednesday UK

currency crisis”

GBP/USD

And of course…..USD/SGD

AUD/USD

EUR/USD

Stocks Part of a company Traded on stock exchanges E.g. NYSE, NASDAQ etc.

Berkshire Hathaway

Make a guess!

A contract between a buyer and a seller More than 80% of the futures contracts

trade through the Chicago Mercantile Exchange

Stock index futures Currency futures

Futures

Eurodollar pit

Stock index

Euro

Gold

Crude

Corn

Live cattle

Lots of markets to trade or invest in.

Futures options